Bajaj Auto has announced a workforce reduction of 500 employees as part of a comprehensive efficiency program aimed at reducing fixed costs and streamlining organizational structures. The company disclosed this decision in an exchange filing on Wednesday, emphasizing the focus on long-term stability and operational optimization.

Workforce Reduction Details

The layoffs predominantly affect salaried positions and middle management roles, reflecting the company's strategy to remove organizational complexity. The workforce restructuring has resulted in a significant reduction in total headcount.

CEO Gottfried Neumeister explained the rationale behind the decision, stating that "this reduction in positions is a difficult but necessary decision to lower our costs, slim down structures, and thereby place the company on a stable footing for the long term." The restructuring involves reducing complexity across multiple areas, including the model range, IT systems, and departmental organization, particularly through the removal of one management layer.

Strategic Focus and Brand Portfolio

The efficiency measures are implemented with a clear focus on the motorcycles segment, concentrating on three core brands: KTM, GASGAS, and Husqvarna. This strategic alignment aims to optimize the product and project portfolio while streamlining the international site and leadership network. The company plans to publish preliminary figures for the Bajaj Mobility Group for fiscal year 2025 on January 29, 2026.

Financial Performance and Sales Data

The Bajaj Mobility Group reported challenging financial performance for fiscal year 2025, with consolidated sales reaching just over EUR 1 billion, marking a substantial 46% reduction compared to the previous year. The motorcycle sales performance showed mixed results across different periods.

Inventory Management and Business Restructuring

The company has made significant progress in reducing motorcycle inventory levels, demonstrating improved operational efficiency. Inventory reduction efforts have yielded substantial results over the year.

As part of the closure of the bicycle division, the company sold 64,110 e-bicycles and bicycles during the period, compared to 106,311 units in the previous year. This strategic exit from the bicycle segment aligns with the company's focus on core motorcycle operations and brand consolidation efforts.

Operational Outlook

The workforce reduction and structural changes represent Bajaj Auto's commitment to operational efficiency and cost management in challenging market conditions. The company's focus on three core motorcycle brands and the elimination of organizational complexity are expected to contribute to improved operational performance and long-term sustainability in the competitive automotive sector.

Bajaj Auto 's European subsidiary, Bajaj Mobility AG, has announced a comprehensive restructuring program following significant declines in both revenue and sales performance. The company is implementing strategic changes to improve operational efficiency amid challenging market conditions.

Financial Performance Decline

Bajaj Mobility AG reported substantial financial challenges with revenue experiencing a sharp 46% decline. Despite this significant drop, the company's revenue remained above EUR 1 billion, indicating the scale of operations even during this downturn.

Motorcycle Sales Impact

The company's core motorcycle business faced considerable pressure, with sales volumes dropping by 28% to 209,704 units. This decline in unit sales contributed significantly to the overall revenue reduction and prompted management to reassess operational strategies.

Restructuring Measures

As part of its efficiency improvement initiative, Bajaj Mobility AG has implemented workforce optimization measures affecting 500 positions. The job cuts represent a strategic move aimed at aligning operational costs with current market realities and improving overall organizational efficiency.

Operational Response

The restructuring program reflects Bajaj Mobility AG's proactive approach to addressing market challenges while maintaining its position in the European mobility sector. The company's decision to implement these measures demonstrates its commitment to adapting operations in response to changing market dynamics and ensuring long-term sustainability.